The Portland foreclosure situation is a good deal different from what we were discussing a few years ago when the tidal wave of 7.3 million foreclosures and short sales swept the nation. When The New York Times “Dealbook” recently pronounced that the supply of cheap foreclosed homes in America is dwindling, it came as news to…well, no one.

Let’s face it: Portland Metro Area investors wouldn’t need to look up the latest statistics to guess that number of offerings would be down. The continuing rebound in home values, slow but steady improvement in the overall economic picture, and even just the passage of time has to mean that the glut of subprime-crisis-era foreclosures would have worked their way through the system.

But there are always new foreclosures, and for anyone hoping to make a bargain buy in today’s Portland foreclosure market, the same qualities that brought post-crisis success still apply today:

• Knowledge of (or willingness to research) comparable neighborhood values
• Realistic appreciation of rehabilitation costs
• Decisiveness (willingness to act swiftly)
• Ready access to investment capital

The principal difference in today’s Portland foreclosure milieu is that far fewer are available, and the difference […]

The importance of hiring a reliable home inspection is one of the bedrock principles every home buyer reads and hears about from all quarters. Any Realtor^® worthy of the name will be able to recommend a Portland home inspector with the kind of strong credentials that establish the validity of his or her report—it’s part of the full service a real estate professional brings to the process of buying a home.

The object of the inspection is, of course, to prevent the unexpected: repair bills that might otherwise go undetected until after the purchase. A good inspector finds problems before you close on a property. Although a home inspector’s fee may require an investment of a few hundred dollars, it’s certainly better than spending tens of thousands down the road.

A thorough inspection and the report that follows are what you are looking for—what earns a new home buyer peace of mind. And choosing the right candidate isn’t difficult, as long as you are willing to follow a few common sense procedures. For instance, the written inspection report is an important part of the […]

Despite the improving economic outlook, for many families, finding an affordable house in Portland can still be a challenge. According to a study by the Joint Center for Housing Studies at Harvard University, more than a third of today’s families have had to devote at least 30% of their combined household income to the monthly mortgage payment—and that figure exceeds the generally accepted standard. In other words, even though mortgage interest rates remain pegged at historically low levels, landing an “affordable” house in Portland (just as in the rest of the country) can take some doing. Here is one five-step approach that has rewarded house-hunters in the past:

1. Define Affordable House in dollars

The first step to finding an affordable house should be to work out a target budget. The Wall Street Journal currently recommends spending no more than 28% of monthly income on your house). Make sure to include additional fees such as legal fees, repairs, maintenance, and closing costs in your calculation. The bottom line you come up with isn’t one set in stone, but it’s a reasonable goal to have in […]

ABC’s Nightline recently aired an interesting segment about house flipping, which included a magic number that’s probably never been seen before.  Portland Metro Area house flippers would have been glued to their TVs if they’d stayed up late enough to catch Nightline, because if authentically magical, it’s a good number to know.

The segment was part of a series called “Realty Check.”  This one was about new strategies in the “ever-competitive world of flipping.”  The show started with some background about how expensive house flipping can be if it’s done in a hurry and on the cheap.  Just slapping a coat of paint on the walls can result in an investment that languishes on the market, often until the asking price is reduced to an unprofitable level.  The narrator stated that in the past, house flipping was often approached with the idea that the sooner a renovation could be completed, the better: “Get in, get out, move on.”  We were shown how TV series like Flip It to Win It, Flipping Vegas, Rehab Addict, and Flip or Flop turned rehab projects into races against […]

Finding the absolutely perfect home—then being able to afford—may be every Portland home seeker’s dream accomplishment, but absolute perfection in any realm usually remains exactly that: attainable in a dream, but nowhere else.

In fact, online mortgage site HSH.com surveyed homeowners and found a tiny 20% of the home owning population had zero complaints about their current digs.  Sixteen percent wanted a larger place; 9%, more closet space.  Lower percentages wanted more natural light, lower maintenance costs, another bathroom, or a swimming pool.  Interestingly, about a quarter of respondents wished they had done more research on their new neighborhood…or neighbors.

Although the pollsters didn’t give a clear report on how many considered neighbors the biggest problem, it’s certainly true that issues with neighbors can add unnecessary stress for you or your family.  It’s rare to find people who actually decide to abandon ship because of neighbor problems; much more commonly, Portland metro area homeowners just learn to live with them.  But rather than accept that burden, psychologists prescribe a number of ways to try to address such problems.  At least four approaches can be […]

Portland’s mortgage interest rates have been so low for so long that there is the definite possibility that the real value they represent—for both Portland metro area home buyers and sellers—may now be being taken for granted.

It’s only natural.  If you believe that past history is the best predictor of future performance, last January’s common wisdom that mortgage interest rates in 2014 would head up to at least 5% or more wouldn’t have fazed you a bit.  One quick glance at the squiggly lines on a chart showing either 30-year or 15-year fixed mortgage interest rates reveals a pronounced downward slope.  Ever since mid-year 2007, it looks like a playground slide.  It does level off at the end, starting around three years ago; but if you take in the longer view, back to 1982, you see an even steeper tumble—all the way down from (gulp!) 18%!  Only the bravest child would dare climb the ladder to that playground slide…

For a couple of years now, we assumed the bottoming-out of Portland mortgage interest rates would reverse soon enough.  But, as The L.A. Times pointed […]